A lawsuit filed by Little Caesars subsidiaries in the US suggests BitClub Network funds may have been laundered through the company.
As reported by John Rolfe at the Daily Telegraph, Little Caesars’ failed Australian operation is being sued by US subsidiaries for $2.5 million.
Defendants cited in the lawsuit are former directors
‘Ernest and George Omar Koury, along with their wives Sandra and Gina.’
According to the complaint, the defendants signed a franchise agreement in August 2018 to pay royalties of at least four per cent of sales – plus buy sauce, dough and cheese from the US operation.
The agreement said the Australian business would be in default if it became insolvent or closed.
It is alleged that from June last year, royalties and ingredients invoices were not paid.
The amount now claimed is $1.1 million. A further $1.4 million for future royalties is sought.
Little Ceasars’ link to BitClub Network comes courtesy of defendant Matthew Goettsche (right).
Matthew Goettsche was the “managing member” of Bitwealth, which tipped $14 million into the Australian franchise in 2018-19 only for it to sink into administration in October last year owing $8.5 million.
The same year Goettsche pumped millions in Little Caesars AU, BitClub Network
froze ROI payments
.
For years before and during 2018 and 2019, Matthew Goettsche’s only known source of income was
BitClub Network
.
Bitwealth appears to be a shell company registered in Nevada.
In late 2019 the DOJ swooped on Goettsche and his co-conspirators,
alleging
BitClub Network was a $722 million dollar Ponzi scheme.
There’s a very real possibility the $14 million Goettsche invested into Little Caesars AU was stolen BitClub Network investor funds.
Whether or not the DOJ follows up on the money trail remains to be seen. Goettsche remains in custody pending the outcome of his criminal case.
Little Caesars AU has since been liquidated by Jirsch Sutherland, who are calling for an investigation by the Australian Securities and Investment Commission.
🤖 Quick Answer
What is the lawsuit filed by Little Caesars subsidiaries about?Little Caesars US subsidiaries sued the company's failed Australian operation for $2.5 million, alleging that defendants Ernest and George Omar Koury and their wives Sandra and Gina failed to pay royalties and ingredient invoices since June of the previous year, despite signing a franchise agreement in August 2018.
What allegations connect BitClub Network to Little Caesars?
The lawsuit suggests that BitClub Network funds may have been laundered through Little Caesars, according to claims reported by John Rolfe at the Daily Telegraph, though specific details regarding the connection between the cryptocurrency network and the pizza franchise remain under investigation.
What were the financial obligations under the franchise agreement?
The August 2018 franchise agreement required the Australian operation to pay royalties of at least four percent of sales and purchase sauce, dough, and cheese
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